Projects of Policy and Regulation Sector

Palau Electricity and Water Tariff Reform

Organization: DHInfrastructure

Description

The Asian Development Bank (ADB) wanted a consultant to assist the Palau Public Utilities Commission (PPUC) with its corporate reform plan so that the utility would be able to achieve financial sustainability and implement its capital investment program.

Service Provided

DHInfrastructure assessed Palau's tariff methodology and petition procedure for its electricity, water, and sewage services. We determined the extent to which PPUC's operating and capital costs were recovered through tariffs, and conducted a historical analysis of PPUC's finances. We then prepared revenue requirement and cost of service models for each of PPUC's services. Finally, we helped PPUC develop revised tariff petition procedures and supported its first electricity tariff petition.